Energy infrastructure

Signal where the energy system is heading, then build for it

People in Australia have turned their rooftops into the biggest energy generator in the grid and are installing home batteries at record rates. Government has yet to say clearly that electricity is where the energy system is going.

Sector opportunity: Ambiguity creates a vacuum

People in Australia have already embraced the role of renewable electricity in our lives, by transforming our home rooftops into the biggest energy generator in the grid and installing home batteries at record rates. But despite supporting this transformation through government incentives, the Australian Government has been reticent to clearly signal the centrality of electricity in the future energy system. This ambiguity creates a vacuum that allows others to cast doubt on the feasibility of Australia's electric future and slows the transition.

Record rates

Home rooftops are now the biggest energy generator in the grid, and home batteries are being installed at record rates.

Connections

Speeding up new connections would increase access to Consumer Energy Resources for all households in Australia.

Homes, businesses and vehicles are assets, not problems to be managed

Regulations have not kept pace with the technologies that will use and power the grid of the future, including millions of decentralised solar PV systems and batteries, bidirectional EV chargers, and load-shifting appliances. Consequently, homes and businesses wanting to electrify can often face high costs and long waiting times to connect large electric loads, generation and storage technologies. Rapidly electrifying most parts of our economy will pose challenges, particularly in underserved regions of the country and as data centre demand for new connections grows. However, it also provides enormous opportunities to the energy system; unlike their fossil-fuelled equivalents, electric, grid-connected homes, businesses and vehicles are assets, capable of seamlessly adjusting demand flexibly and sending energy back into the grid when, and where, it is needed.

Homes and businesses wanting to electrify can face high costs and long waiting times to connect.

Speeding up new connections would ensure the network is better utilised across a growing user base, reducing the share of fixed charges that have been keeping electricity bills high despite falling wholesale costs.

Case study

Apartment residents hit electrification roadblocks

Residents at a North Melbourne apartment complex are highlighting apartment electrification infrastructure barriers.

Residents at a North Melbourne apartment complex are highlighting apartment electrification infrastructure barriers.

The owners corporation at a 33-unit apartment complex in North Melbourne has spent years improving the sustainability and liveability of its building. The committee has been pursuing electrification opportunities, including efficient electric appliances, electric vehicles and rooftop solar, but found that the building's gas-era design and limited electrical capacity may require substantial upgrades to both the building and local electricity network before residents can fully electrify. So far, the committee has invested $14,000 in consultants and technical assessments, as well as more than 1,000 hours of volunteer time, to explore electrification opportunities. It cost $5,500 just to answer a basic question: can the local grid supply enough power for the building to go all-electric? Despite these challenges, the committee remains committed to the transition. Their experience highlights both the leadership of resident-led communities and the need for targeted support to overcome infrastructure barriers and accelerate apartment electrification. Case study credit: Haines Street Owners Corporation, and High Life Expo.

The policy ask

Unlocking the potential of electrification will require a clear goal, granular data, effective planning and robust policy across all levels of government. The Australian Government has a critical role to play in articulating this vision, as well as the cross cutting and sector specific actions needed to get there. To that end, the Australian Government should: Release an 'Australia's Electric Future vision statement' that sets out the central role of electrification powered by renewables in every sector of the Australian economy, and a framework for realising this vision. Establish 'Rewiring the Suburbs' and 'Rewiring the Regions' programs aimed at speeding up grid connections by supporting end users with costs to connect. All households and businesses in Australia need a clear signal about the central role of electricity. This signal should come sooner rather than later to allow time to plan for upgrades and align with natural replacement cycles. Without this signal, people will buy appliances today that lock them into high costs for 10-15 years.

What the vision statement should articulate

The statement should articulate the Government's plan for ensuring data collection, system planning and state and federal policies are aligned with delivering the vision set out in the statement.

What Rewiring the Suburbs and Rewiring the Regions would fund

Each program should include a pool of funding for end users to manage the cost of new connections. For example, feasibility studies for assessing network capacity to support charging infrastructure, industrial loads and apartment complexes.

Key reform

Signal that Australia's future energy system will be centred around electricity and accelerate the shift to our electrified future by providing targeted support for grid upgrades.

Issue an Australia's Electric Future vision statement setting out the central role of electrification powered by renewables in every sector of the Australian economy, and a framework for realising this vision.</p><p>Set up 'Rewiring the Suburbs' and 'Rewiring the Regions' programs that provide targeted funds to speed up infrastructure upgrades.

The movement

Electrify Australia is a growing movement of consumer, business, civil society and research groups advocating for a national effort to accelerate electrification, to secure an affordable and resilient energy future for everyone.

Electrification means swapping gas, diesel and petrol for electric alternatives powered by renewables, so households, businesses and industry run on cheaper energy that's made in Australia.